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Is Apple Inc. (AAPL) Suffering From an ‘Illness’? Fiat Chrysler CEO Thinks So

Apple Inc. AAPL, Project Titan

Apple Inc. , the U.S. based technology giant, is not competent enough to make an electric vehicle on its own, and therefore, it must collaborate with other carmakers for this purpose, believes Fiat Chrysler CEO – Sergio Marchionne. The idea of Apple entering the auto industry has naturally left its fans intrigued, but long-time auto executives have been somewhat dismissive of Apple’s chances of success.

Apple Inc. AAPL, Project Titan

Apple not competent enough

Marchionne, who was present at the Geneva Auto Show, told the journalists that all of Apple’s requirements could be met with the capacity available among the car makers. Since car making is a very complex business, therefore, it would make more sense for the iPhone maker to partner a car manufacturer rather than become a manufacturer itself, Marchionne said.

“If they have any urges to make a car, I’d advise them to lie down and wait until the feeling passes. Illnesses like this come and go, you will recover from them, they’re not lethal,” the executive said.

Apple is probably making the boldest bet in its history by planning on developing its own electric car. The firm has successfully entered completely new markets before, but the auto industry is very complex, and therefore, it presents challenges that Apple has never quite had to face before.

Despite all odds, Apple Inc. looks determined to develop an EV, and has recently been reported to have purchased a 96,000 square-foot warehouse in Sunnyvale, California, where the firm is conducting research on electric car development.

Apple’s car project an ‘open secret’

Though reports of Apple working on an electric car have been making rounds on the internet every now and then, the iPhone maker has still not announced anything officially. It all started last year, when Reuters got to know from a source that Apple, who currently makes phones, computers and watches was exploring to make an entire vehicle, and not just designing automotive software or individual components.

Despite Apple’s effort of keeping it a secret, it working on an electric car is seen as an ‘open secret,’ by Tesla CEO Elon Musk, who believes the time is not far, when vehicles that could not drive themselves would become a “strange anachronism.”

Musk says it is very obvious that Apple is trying to make a compelling car of its own. “It’s pretty hard to hide something if you hire over a thousand engineers to do it,” said Musk, who does not see the iPhone-maker as a threat. “Tesla will still aspire to make the most compelling electric vehicles, and that would be our goal, while at the same time helping other companies to make electric cars as well.”

Apple Inc. has not made any formal announcement as of now regarding working on a vehicle, but it recently registered several automobile-related internet domains that include apple.car and apple.auto.

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Aman is MBA (Finance) with an experience on both marketing and Finance side. He has work as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, playing PC games and cricket.

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